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TMI Blog2017 (4) TMI 843X X X X Extracts X X X X X X X X Extracts X X X X ..... borne by the appellant - when out of total amount only negligible amount is recovered as administration cost which is not intended to defray from the cost of food the same cannot be considered as charges being recovered from the employees - credit allowed. Township security services - Consultancy services - Held that: - Township security services and Consultancy services are availed by respondent prior to 01.04.2011. During the relevant period the definition of input services was so wide as it included the words activities relating to business - there is no ground to interfere with the view of the Commissioner (Appeals) in not imposing penalty in this regard. Appeal allowed - decided partly in favor of appellant. - E/20392/2015 - A/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input services and therefore ought not to have been allowed by the Commissioner (Appeals). He submitted that credit on outdoor catering services is admissible only when the service tax amount has been borne by the respondent and the same has been not recovered from the employees. That in the present case the respondent has entered into an agreement with the contractor which shows that the contractor shall bear the service tax liability and the same will be reimbursed by the respondent. That as per agreement the respondent did not have obligation to pay the service tax and therefore the credit availed is wrong. That there is no documentary evidence showing that respondent has paid service tax on canteen services. With regard to Transport ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion that appellant has not produced sufficient documents and that appellant has not paid service tax on charges for canteen services is not raised in the show cause notice. The Tribunal in the case of Hindustan Coca Cola Beverages Pvt. Ltd., Vs. CCE, Nashik [2015 (38) S.T.R. 129 (Tri.-Mumbai)] had analyzed the eligibility of credit on outdoor catering services/canteen services after 01.04.2011 and had observed that when it is not established by the Department that the said services are used primarily for personal consumption of employee, the assessee would be eligible for credit. He submitted that the canteen services were used in relation to the activities of manufacture of the appellant and used by the employees in the manufacturing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irement for carrying out the business of the respondent in terms of the Factories Act, 1948. It is also brought out that only a negligible amount is collected from the employees as administration charges. The rest is borne by the appellant. The Tribunal in the case of Finolex Cables Ltd., Vs. CCE, Pune-I [2017-TIOL-405-CESTAT-MUM] has analyzed a similar issue. It was observed in the said judgment that when out of total amount only negligible amount is recovered as administration cost which is not intended to defray from the cost of food the same cannot be considered as charges being recovered from the employees. 8. Therefore, I hold that Commissioner (Appeals) has rightly allowed credit in respect of Canteen services. It is also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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